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The cost of failed deliveries for eCommerce businesses

Failed Delivery Return to Sender Yodel

The UK has (by quite some margin) the largest e-commerce industry in the European Union. According to the 2014 eCommerce sector report from IMRG (the association of eCommerce), ‘IMRG Valuing Home Delivery Review 2014’, the overall cost of delivery failures for e-retailers in UK could reach a total value of £771 million.
However, despite being such a high figure, the total cost of failed deliveries has fallen 50% in the last two years, as a result of innovation in services offered by courier companies (delivery time slot prediction delivers more accurate, delivery points, delivery weekends, etc.).
For Andrew Starkey, Head of Logistics of IMRG, “delivery failures resulting from orders placed with retailers and online merchants each year are in excess of £1 billion in avoidable costs. Recent innovations in B2C has reduced delivery costs, in addition to providing buyers with a wider range of carriers, collection services and more information about where and when they can expect their deliveries.”
‘Costs’ within the IMRG study are defined as the following:

– 1st attempt of delivery – requires a new delivery attempt

– 1st attempt of delivery – pickup by the customer

– Late Deliveries

– Order Lost – replacement shipment

– Order not delivered and returned to the sender

– Refund for defective product

Parcelhub’s free multi-carrier shipping software empowers hundreds of online retailers to save time and money on their eCommerce Delivery.

Simon Wright

As SEO and Content Marketing Manager at the Whistl Group, Simon has over 10 years' experience in both B2B and B2C marketing, and as a result, offers a unique perspective on the pre- and post-checkout delivery experiences. Simon writes regularly for both the Parcelhub and Whistl blogs and is passionate about helping retailers make delivery their competitive advantage.

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